Macerich's Strong Leasing Activity and Strategic Acquisition Drive Growth

Macerich (MAC) has reported strong leasing performance with 4.3 million square feet signed year-to-date and strategically acquired Crabtree Mall to boost its portfolio in high-growth areas. Analysts offer mixed forecasts with a 14.05% potential upside and 24.67% downside based on GF Value. The company's average target price is $19.00, suggesting a promising upside of 14.05% from its current trading price of $16.66.

Macerich (MAC) has reported robust leasing performance for the first half of 2025, with 4.3 million square feet signed year-to-date. The company's strategic acquisition of Crabtree Mall further bolsters its portfolio in high-growth areas. Analysts offer mixed forecasts, with a potential upside of 14.05% and a downside of 24.67% based on GF Value, suggesting a promising outlook for the stock.

The company achieved Funds From Operations (FFO) of $87 million, translating to $0.33 per share, and reported a 2.4% increase in Net Operating Income (NOI) for the second quarter. Despite a slight decrease in occupancy rates to 92% due to specific tenant closures, Macerich maintained strong leasing momentum, with revenue growing by 20.7% over the last twelve months. The stock experienced a minor decline of 0.12% after hours, reflecting investor caution amid broader market uncertainties.

Macerich's acquisition of Crabtree Mall for $290 million signals strategic expansion. The Raleigh-Durham market acquisition is expected to enhance Macerich’s portfolio and drive future growth. The company aims to achieve a 5.2% compound annual growth rate (CAGR) in NOI for its go-forward portfolio and reduce leverage to a low-mid range. Macerich is also eyeing a $130 million opportunity in its Snow Pipeline and aims to achieve a $2 billion disposition target.

Executive commentary highlighted the company’s strategic focus and confidence in its operational capabilities. Jack Shea, CEO, emphasized the company's alignment with its mission and values, while Doug Healy, EVP of Leasing, noted the strength of the retail environment despite macroeconomic uncertainties.

Analysts offer mixed forecasts, with a potential upside of 14.05% and a downside of 24.67% based on GF Value. The company's average target price is $19.00, suggesting a promising upside of 14.05% from its current trading price of $16.66.

References:
[1] https://www.investing.com/news/transcripts/earnings-call-transcript-macerich-q2-2025-sees-steady-noi-growth-93CH-4184008